Bitcoin, after the implosion of the crypto exchange FTX, continues to struggle not only in terms of trading prices but also in terms of profits.
It can be recalled that the company, back in November 2022, moved to Chapter 11 bankruptcy in the US district court, and collapsed in just a few days.
Bitcoin, the main driving force of the crypto market, was greatly affected by this unpleasant development and ended up exiting 2022 with a lower value than it was in 2021.
according to BTC data aggregator StatmuseThe first digital coin has an average price of $47,500 in 2021 but closed last year with an average value of $28,171, losing 64.3% of its price for the year.
Chart: Statmuse
On-Chain Metrics Spell More Bad News For BTC Holders
A quick analysis of some technical indicators of Bitcoin to that network as well as investors and current holders in loss and in danger of incurring other losses.
Gigisulivan, an analyst for CryptoQuant, considered the Stock to Flow Reversion of the digital asset with the conclusion that BTC could fall to $16,700 during this bear market.
“Just think, consider 2023 could be worse than 2022 if we know what kind of recession we have,” said the analyst who predicts that Bitcoin will change hands in the $20,000-$22,000 range next week when the Consumer Price Index (CPI) report will be released .
Yonsei_dent, another CryptoQuant crypto expert, focused on the BTC Support Adjusted Dormancy Indicator and found that long-term virtual coin holders are diversifying and increasing their holdings, indicating a growing negative sentiment towards the asset.
At the network level, it has also been observed that Bitcoin’s Network Realized Profit / Loss Ratio (NPL) failed to rise to a positive value since the collapse of FTX.
According to Santiment, the current NPL of digital assets is -9.47 million. A negative NPL indicates the failure of the network to make any profit.
BTC total market cap at $326 billion on the weekend chart | Chart: TradingView.com
How Bitcoin is Performing Today
At the time of this writing, the largest cryptocurrency in terms of market capitalization is trading at $16,948 according to tracking from Coingecko.
BTC managed to increase its value by 2.5% in the last seven days but is still far from $41,154. average monthly in January 2022.
With the current situation, holders are advised by analysts to keep an eye on potential downsides that may occur over the next few days.
-Featured image: Frommer’s